\u3000\u3000 Ping An Bank Co.Ltd(000001) Ping An Bank Co.Ltd(000001) )
Event: the company issued an annual report, with a revenue of 169383 billion yuan in 2021, a year-on-year increase of + 10.3%; The net profit attributable to the parent company was 36.336 billion yuan, a year-on-year increase of + 25.6%, which was equivalent to 99.3% of our previous forecast. The profit before provision was 119696 billion yuan, a year-on-year increase of + 11.7%. Weighted average roe10 85%, year-on-year + 1.27pct. Q421's net profit attributable to the parent company was 7.201 billion yuan, a year-on-year increase of + 10.3% and a month on month decrease of - 37.7%.
The scale of assets grew steadily, and the quality of assets continued to improve: loans issued were 3.06 trillion yuan, a year-on-year increase of + 14.9%, deposits absorbed were 2.96 trillion yuan, a year-on-year increase of + 10.8%, net interest margin was 2.79%, a year-on-year decrease of -9bp, credit scale expanded faster than interest margin, driving net interest income of 120336 billion yuan, a year-on-year increase of + 6.1%. The non-performing loan ratio was 1.02%, year-on-year -0.16pct, and the provision coverage ratio was 288.42%, year-on-year + 87.02pct. Throughout the year, the accumulated written off loans were 40.418 billion yuan, a year-on-year increase of - 31.9%, and the non-performing loans recovered were 32.771 billion yuan, a year-on-year increase of + 25.7%. The quality of the company's real estate related loans is good, which deserves special attention. The balance of real estate loans at the end of the year was 288923 billion yuan, a year-on-year increase of + 6.2%, accounting for 9.4% of the total loans; The non-performing rate of real estate loans is 0.22%, which is far lower than the non-performing rate of enterprise loans of 0.71%.
Retail transformation continued to make breakthroughs, and science and technology enabled cost reduction and efficiency increase: there were 1099800 wealth customers, with a year-on-year increase of 17.7%, including 69700 private customers, with a year-on-year increase of 21.6%; Retail customer aum3 18 trillion yuan, a year-on-year increase of + 21.3%. Non interest income (including wealth management fees, income from selling funds on a commission basis and income from selling wealth management on a commission basis) was 49.047 billion yuan, a year-on-year increase of + 22.4%, accounting for 28.96% of the total revenue, and the proportion continued to increase. The annual revenue of Ping An wealth management, a subsidiary, was 2.647 billion yuan and the net profit was 1.616 billion yuan. The achievements of science and technology empowerment gradually emerged. The annual cost income ratio was 28.30%, with a year-on-year ratio of -0.81pct. The Internet received 3.4099 million customers, accounting for about 30%.
Investment suggestion: we are optimistic about the company's retail transformation to a new level and the continuous optimization of asset quality. It is predicted that the company's profits from 2022 to 2024 will be 45.027 billion yuan, 52.947 billion yuan and 59.320 billion yuan respectively. The current share price of the company corresponds to 2022epb0.00 62x, which has been at a low level for nearly five years and maintains the "buy-b" rating.
Risk tips: macroeconomic downturn exceeds expectations, retail transformation is less than expected, policy risks, etc.
